Follow Us

The Collapse Of The Us Banking System Explained In Just 39 Minutes

By

Alex Blumberg and Adam Davidson tackle a very tough subject: Trying to explain exactly what a bank is and does. They talk to a number of experts about what has gone wrong in banking, but not before bringing us all up to speed on some banking basics, like understanding a bank balance sheet, and a bank's assets and liabilities, and the squishy business of what banks say about their balance sheets compared to what they are.

Alex and Adam walk us step by step through the complications of the US government buying up bad assets from banks, and explain why, when it comes to footing the bill, the government might just prefer to not be in charge of the very banks it is having taxpayers bailout. From a dollhouse, to a hypothetical bank worth tens of dollars, to the trillions of dollars being spent to keep banks afloat, Alex and Adam talk economy, and where we might be headed. (39 minutes)

More in Economics

One of the things we were excited to investigate when we went to Alabama was to answer the question at the heart of the immigration debate: what does it cost taxpayers when we let in millions of immigrants, documented and undocumented? In Albertville, how much was it? We asked economist Kim Rueben and her colleague Erin Huffer to run the numbers.

More by Alex Blumberg

Alex Blumberg investigates a little-studied phenomenon: Children who get a mistaken idea in their heads about how something works or what something means, and then don't figure out until well into adulthood that they were wrong.